MACROECONOMI

C
ANALYSIS

Prepared by: Jestoni M. Villareiz

Subject Teacher
LEARNING OBJECTIVES
At the end of this lesson students will be able to,

1. differentiate microeconomics and macroeconomics

2. analyze the different concerns of Macroeconomic analysis.
3. apply the concepts of Macroeconomic Analysis using real-world data.
RECAP – PREVIOUS LESSON
Lasts week, we talked about

1. Law of Demand
2. Law of Supply
3. Market Equilibrium
MICROECONOMICS vs.
MACROECONOMICS
MACRO
MICRO
- deals with the sum of these
- deals with individual decisions
individual decisions - focuses on national income
- typically, firms and and the overall price level.
households
MACROECONOMIC CONCERNS
The 4 major concerns of Macroeconomics:

1. INFLATION

2. UNEMPLOYMENT

3. BALANCE OF TRADE

4. OUTPUT GROWTH
 INFLATION
Inflation is an increase in the
overall price level.

Keeping inflation low has long

been a goal of government policy.

High Inflation = High cost of

living  Inflation rate in the Philippines went up further to 4.2
percent at the beginning of 2021.

 This is the highest inflation recorded since February

2019.
 UNEMPLOYMENT
Unemployment is a key indicator of
the economy’s health because it is
closely related to the economy’s
aggregate output.

unemployment rate – The

percentage of the labor force that is
unemployed.
• PH’s unemployment rate in May 2021
was estimated at 7.7 percent.
• This is equivalent to 3.73 million
unemployed Filipinos who are 15
years old and over.
 BALANCE OF TRADE (BoT)
International trade is a major part
of today’s world economy.

BoT - the difference between the

value of a country's exports and the
value of its imports  PH total external trade in goods in May 2021
grew at an annual rate of 39.9 percent or equal
to USD 14.54 billion

 China is PHs major export and import partner

(export value of USD 954.28 million) (import
value of USD 2.21 billion)
 OUTPUT GROWTH
BUSINESS
The main measure of how an CYCLE
economy is doing is looking at the
aggregate output.

GDP (Gross Domestic Product) - The

total quantity of goods and services
produced in an economy in a given
period.

Business Cycle – Short term ups and

downs of the economy
RECENT PH GDP 11.8% as of 2nd Quarter of 2021

SOURCE: https://psa.gov.ph/national-accounts
PH GDP OVER TIME
POSSIBLE ECONOMIC RECOVERY
SCENARIOS
 A check (swoosh) mark for the Philippine economic recovery?....

RESPOND Projected GDP Growth Rates and

Income Per Capita
92,000.00 8
6
90,000.00
4
Per capita income

88,000.00

Growth Rate
2
86,000.00 0
-2
84,000.00
-4
82,000.00
-6
80,000.002018 2019 2020 2021 2022
-8
2023

Source: Presentation of Dr. Mario Lamberte (RESPOND, 27 July 2020)

Source: UN DESA (Department of Economic and Social Affairs) World Economic Situation and Prospects 2021 (released 25 January 2021)
SUMMARY
The crisis brought by COVID-19 caused economic shocks in our
country. Strict quarantine restrictions have resulted has to loss of jobs,
lack of source of income and increasing prices. Hence, understanding
macroeconomics is important in analyzing the complicated forces
which determine economic growth and sustain it while our economy is
the road to recovery.
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COMMENTS??
QUESTIONS??
ASSIGNMENT

• Create your own macroeconomy circular

model of a final product becomes
available in the market.
• The deadline for the submission will be
on Friday, 5:00PM
THANK YOU!!